📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

August 8 robotaxi day 'a key historical moment for the Tesla story'

Published 06/21/2024, 08:25 AM
© Reuters.
TSLA
-

Wedbush analysts believe the upcoming "Tesla (NASDAQ:TSLA) AI Day" on August 8th will be a pivotal moment for the company, potentially propelling its stock towards a $1 trillion market cap. The firm maintained an Outperform rating and $275 price target on Tesla stock.

"We believe the August 8th robotaxi day will be a key historical moment for the Tesla story that we see as a near-term catalyst," Wedbush states in a recent note. This optimism stems from recent developments, including the company's progress on its Full Self-Driving (FSD) technology and the upcoming unveiling of its first robotaxi.

Wedbush highlights CEO Elon Musk's "strategic vision with FSD and Optimus" as a key factor in Tesla's future success. They see the recent FSD v12.4 update and the beginning of FSD testing in China as positive signs. Their bull case valuation of $350 per share hinges on Tesla achieving success with FSD and autonomous driving.

The August 8th event is expected to be a major reveal, finally bringing Tesla's long-discussed robotaxi concept to fruition. "As part of Tesla's long-driven full self-drive thesis," Wedbush explains, "it is now official that robotaxis will become a part of the Tesla portfolio."

Wedbush acknowledges some ongoing challenges, like short-term demand fluctuations, particularly in China.

However, they see signs of stabilization and believe that with China on board, a global demand rebound is possible. They emphasize the importance of the second half of 2024 for Tesla's turnaround, with much hinging on strong execution by Musk and his team.

Overall, Wedbush views Tesla as a company with a compelling risk/reward profile. With the August 8th Robotaxi Day and a potential demand rebound on the horizon, they believe Tesla has positive catalysts ahead.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.